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Foreign subsidiary

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Viewing 4 posts - 1 through 4 (of 4 total)
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  • February 18, 2020 at 1:38 pm
    Foreign subsidiary 2
    mirliz
    Participant

    Sir, in determining the foreign operation functional currency (F.C), which rules should be use instead ?

    1. The currency which mainly influence sale price, operating cost and etc
    Or
    2. Degree of autonomy, volume of transactions with parent and etc

    If question were ask about the F.C for foreign operation, does we have to mention all this rule?

    February 18, 2020 at 3:47 pm
    Foreign subsidiary 3
    Stephen Widberg
    Moderator

    If asked to determine the functional currency , write out all the criteria (that you can remember)

    February 19, 2020 at 5:25 am
    Foreign subsidiary 2
    mirliz
    Participant

    So if the foreign subsi only met the first criteria I mentioned above and does not met the F.C criteria on the second, it will still use parent FC?

    February 19, 2020 at 8:49 pm
    Foreign subsidiary 3
    Stephen Widberg
    Moderator

    Judgement call – but never a problem in exam because they give you loads of data.

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